The government, in collaboration with, Small Industries Development Bank of India (SIDBI), has launched a portal through which one can apply for a business loan online. This initiative was started to ease access to credit to individuals and MSMEs. It aims at automation and digitalization of various processes of business loans in such a way that a borrower gets an in-principle approval letter in less than 59 minutes. The borrower will be given the flexibility to choose their own lender.
This scheme was especially aimed at helping Micro, Small and Medium Enterprises (MSMEs). Borrowers will be able to avail of a loan amount from Rs. 10 lakhs to Rs. 1 crore based on their eligibility. The interest rate and loan amounts depend on the applicant's credit score.